Vanguard Group Inc. Purchases 184,387 Shares of Marriott International, Inc. (NASDAQ:MAR)

Key Points

• Vanguard Group Inc. increased its stake in Marriott International to 20,236,478 shares, representing a value of approximately $4.82 billion, after acquiring an additional 184,387 shares during the first quarter.
• Marriott International reported earnings of $2.65 per share for the last quarter, matching analysts' expectations, with revenue of $6.74 billion, reflecting a year-over-year increase of 4.7%.
• The company initiated a stock repurchase plan allowing the buyback of 25 million outstanding shares, typically indicating management's belief that the stock is undervalued.

Vanguard Group Inc. boosted its holdings in Marriott International, Inc. (NASDAQ:MAR - Free Report) by 0.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 20,236,478 shares of the company's stock after purchasing an additional 184,387 shares during the period. Vanguard Group Inc. owned about 7.33% of Marriott International worth $4,820,329,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also added to or reduced their stakes in the company. Sequoia Financial Advisors LLC raised its stake in Marriott International by 11.9% during the first quarter. Sequoia Financial Advisors LLC now owns 13,441 shares of the company's stock worth $3,202,000 after acquiring an additional 1,432 shares in the last quarter. Financial Gravity Asset Management Inc. acquired a new position in Marriott International during the first quarter worth about $2,244,000. Alpha Cubed Investments LLC acquired a new position in Marriott International during the first quarter worth about $974,000. Vista Investment Partners II LLC grew its holdings in shares of Marriott International by 22.5% during the first quarter. Vista Investment Partners II LLC now owns 7,199 shares of the company's stock worth $1,715,000 after purchasing an additional 1,322 shares during the last quarter. Finally, Crossmark Global Holdings Inc. raised its holdings in Marriott International by 5.0% in the 1st quarter. Crossmark Global Holdings Inc. now owns 27,087 shares of the company's stock valued at $6,452,000 after buying an additional 1,301 shares during the last quarter. Institutional investors own 70.70% of the company's stock.

Insider Activity

In other news, CEO Anthony Capuano sold 12,000 shares of the stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $263.90, for a total transaction of $3,166,800.00. Following the completion of the transaction, the chief executive officer directly owned 124,067 shares in the company, valued at approximately $32,741,281.30. This represents a 8.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Rajeev Menon sold 2,500 shares of the stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $268.28, for a total value of $670,700.00. Following the sale, the insider owned 5,706 shares in the company, valued at $1,530,805.68. The trade was a 30.47% decrease in their position. The disclosure for this sale can be found here. Company insiders own 10.68% of the company's stock.

Marriott International Stock Up 2.4%

Shares of MAR stock traded up $6.08 during mid-day trading on Tuesday, reaching $264.05. 362,953 shares of the company's stock traded hands, compared to its average volume of 1,718,545. Marriott International, Inc. has a 12 month low of $205.40 and a 12 month high of $307.52. The company's 50-day moving average price is $268.72 and its 200-day moving average price is $261.13. The company has a market cap of $71.68 billion, a P/E ratio of 29.77, a P/E/G ratio of 2.48 and a beta of 1.44.

Marriott International (NASDAQ:MAR - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $2.65 earnings per share for the quarter, meeting the consensus estimate of $2.65. The firm had revenue of $6.74 billion during the quarter, compared to the consensus estimate of $6.66 billion. Marriott International had a negative return on equity of 93.44% and a net margin of 9.60%. The company's revenue was up 4.7% on a year-over-year basis. During the same period last year, the company earned $2.50 earnings per share. Equities analysts predict that Marriott International, Inc. will post 10.1 earnings per share for the current year.

Marriott International declared that its board has initiated a share repurchase program on Thursday, August 7th that permits the company to buyback 25,000,000 outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback programs are often a sign that the company's management believes its shares are undervalued.

Marriott International Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Thursday, August 21st will be given a $0.67 dividend. This represents a $2.68 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, August 21st. Marriott International's dividend payout ratio (DPR) is presently 30.21%.

Analysts Set New Price Targets

Several brokerages recently commented on MAR. Morgan Stanley reduced their target price on Marriott International from $275.00 to $267.00 and set an "overweight" rating on the stock in a report on Tuesday, April 22nd. Stifel Nicolaus reduced their target price on Marriott International from $295.00 to $240.00 and set a "hold" rating for the company in a report on Wednesday, April 16th. Barclays reduced their target price on Marriott International from $283.00 to $236.00 and set an "equal weight" rating for the company in a report on Tuesday, April 22nd. Dbs Bank raised shares of Marriott International from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, May 14th. Finally, The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $245.00 target price (down previously from $313.00) on shares of Marriott International in a research note on Monday, April 14th. Twelve equities research analysts have rated the stock with a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, Marriott International has an average rating of "Moderate Buy" and an average price target of $280.89.

About Marriott International

Marriott International, Inc engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St.